Budgetary Accounting Government

Question 1

What is the journal entry for approved Purchases for supplies?

Answer 1

DR Encumbrances Control

CR Fund Balance - Reserve for Encumbrances

Question 2

What are the Journal entries when the supplies are bought?

Answer 2

DR Fund Balance Reserve for Encumbrances
CR Encumbrance Control

DR Expenditures
CR Cash

Question 3

How do you calculate Funds Available?

Answer 3

Appropriations minus Expenditures minus Encumbrances

Question 4

What are some categories listed as Estimated Revenues for Budget purposes?

Answer 4

Property taxes
Licenses and Permits
Intergovernmental revenues

Question 5

What should the budgetary Comparison schedule present?

Answer 5

(a) the original and (b) the final appropriated budgets for the reporting period as well as (c) actual inflows, outflows, and balances, stated on the government’s budgetary basis

Question 6

A city received short term financing secured by the city’s taxing power. What is the journal entry?

Answer 6

DR Cash

CR Tax Anticipation Note Payable

Question 7

A town’s budget consisted of
Estimated Revenues 50,000
Appropriations 47,000
Estimated transfers to debt service 900

What is the journal entry for the adopted budget?

Answer 7

DR Estimated Revenues 50,000
CR Appropriations 47,000
CR Estimated Transfers 900
CR Budgetary fund balance 2,100

Question 8

What account is closed out at the end of the year?

Answer 8

Expenditures. Or any other Non-Balance Sheet account

Question 9

The Town approved purchases of 500 and only 450 was received by year end. What is the process that happens to the 50 remaining amount after year end?

Answer 9

1) Remaining Reserved for Encumbrances is removed

2) Post closing Fund Balance account is displayed as “Committed” or “Assigned”